As any investor knows, timing is everything when it comes to the stock market. And while there are a number of factors that can affect prices, one of the most reliable predictors is seasonality. Just as flowers bloom in the spring and grapes are harvested in the fall, certain assets tend to follow predictable patterns throughout the year. Of course, there are always exceptions to these trends, but by understanding seasonality, investors can gain a valuable edge in the market.
Gold and Silver Patterns
Gold and Silver are two of the most important financial assets in the world. While they are highly inversely correlated, meaning that when one rises, the other falls, they have historically had a strong start to the year for completely unrelated reasons. The reason for this is that both gold and silver are seen as safe havens by investors. When there is uncertainty in the markets, investors tend to flock to these assets in order to protect their portfolios. While their historical starts to the year are unrelated, they both tend to benefit from market uncertainty. As a result, they are two of the most important assets for any investor to keep an eye on.
January through May is gold's most aggressive months for most investors; however, the remaining months of the year could be good as well - this is why we suggest contacting us for expert advice on when is the prime time to acquire gold or silver. According to historical data, gold has an average return of 1.6% in the month of January. December also shows strong seasonality for gold, with an average return of 1.5%. May and September are also favorable months for investing in gold, with average returns of 1.3% and 1.2%, respectively. So if you're looking to add some precious metal to your portfolio in the new year, these numbers suggest that now may be a good time to do so.
Cultural factors underlying the Indian wedding season are what make December and January bullish months for gold. Around 10 million weddings are celebrated in India every year, with the wedding season typically running from October through March. This is when temperatures are more agreeable and religious festivals fall on weekends.
During this time of year, purchases of gold novelties, decorations, and lucky charms reach their peak. Many brides in India wear gold jewellery as part of their wedding attire, and it is also customary to give gold gifts to the bride and groom. Gold is seen as a symbol of good fortune and is thought to bring blessings to the newlyweds. Due to the high demand for gold during the wedding season, prices often go up during this time of year.
Protect Your Portfolio Today
If you are looking for a safe investment that will hold its value even in times of high inflation, precious metals may be the answer for you. Check out our FREE eBook to learn more about using precious metals as a hedge against inflation. Our team at American Standard Gold can help you get started with your investments and provide guidance along the way.
American Standard Gold was created to serve as a safe and stable diversification partner when buying, selling, and trading gold, silver, platinum, and palladium. Let us advise you on new products, portfolio diversification, IRA and 401(k) options, valuation of your collection, and other matters related to the precious metals market. Call us today at 877-795-9585 or fill out our online contact form to learn more about our solid solutions using precious metals to diversify your portfolio.
